Skybox struggles with AV1 encoded videos. Regardless of the size of the video file opening an AV1 encoded video the warning to the effect "Video is too large to decode. Continue anyway?" always pops up. If you continue the playback will be choppy/stutter/freeze. Local or DLNA/SMB made no difference.
I re-encoded a couple files with h.265/264 keeping resolution and framerate the same and bitrate similar and the videos playback without problems even with similar file sizes.
Quest 2 headset.